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Why Is It Important to Have a Legal Address to Do Business In The UK

David Prior by David Prior
March 5, 2024
Reading Time: 1 min read
Why Is It Important to Have a Legal Address to Do Business In The UK
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The idea of starting a business in the UK is not new, but in recent years it has grown into a real mainstream for individual entrepreneurs and legal entities. The choice in favor of the United Kingdom can be easily justified by transparent taxation and the absence of bureaucracy, and the registration of a company itself, and in particular the opening of a legal address, is an exciting journey to a bright future. If you are interested in starting a business in England and a cheap virtual address for business, this article is for you.

 

Benefits of Starting a Business In The UK

Today, opening a legal address in England is not so much the start of your commercial activity, but a unique opportunity to conduct business on a completely different scale:

 

    • the UK is full of potential buyers;
    • high standard of living, which means good solvency of consumers;
    • a huge audience of potential consumers with different preferences;
    • work in a country with a developed economy;
    • high purchasing power
    • loyal system of control of the business sphere by the state.

 

Opening a legal address and, accordingly, registering a company in the UK will allow you to become a full participant in trade.

 

What Is a Legal Address?

A legal address in the UK is one of the important details of a company, its official location. Every UK company is required to provide a company registered address as part of registration. It is needed not only for receiving correspondence and storing documents but also so that government agencies and partners can contact the leaders of the organization.

The legal address must be located in the place where the company itself is directly established. Many business owners prefer to have a commercial address.

 

Why Do You Need a Legal Address?

The requirement to have a registered office is specified in the Companies Law approved in 2006. This is necessary to receive business correspondence. The company’s registers should be kept in the office at the address, and access to them is always open for possible verification. The presence of such an organization’s address on the Companies Register strengthens the UK’s image as a country with fully transparent corporate requirements.

 

Can a Living Space Be an Office?

First of all, the owner of a residential property must obtain permission to use it as an office from the housing authority. It is enough to contact this authority, providing the following information:

 

    • what do you plan to do;
    • your company’s opening hours;
    • what transport will be used during the activity;
    • will the layout of the premises change?

 

You should not start any business without obtaining permission from the head of the housing department. If part of the residential premises can be converted to commercial status, you will need to pay for this service.

However, it is not recommended to use such an address to conduct business. This is primarily due to the risk of loss of confidentiality. Also, this method is not very convenient if you regularly leave the country. Additionally, using a personal address may appear unprofessional to clients.

If you are looking for a cheap virtual business address, we recommend contacting The Hoxton Mix.

 

Required Documents

The location of the legal entity is indicated in the constituent documents. The premises at this address may be owned or leased.

In the first case, when conducting an inspection, it is enough to show a copy of the certificate of ownership, in the second – to have in hand a letter of guarantee from the owner of the property about the provision of a legal address. It must contain the following information:

 

    • name of the organization that will register the company;
    • details of the owner – company or individual;
    • name of the director and name of the tenant;
    • location and total area of the premises;
    • consent to the transfer of real estate under a lease agreement.

 

 

Is It Possible to Change The Legal Address?

It is possible to change the legal address. Companies House staff must be kept informed of any changes made. Since the register is updated every day, the new legal address will appear in the public domain in the shortest possible time. It is also worth noting that all documents must be transported to the new office.

The company’s management must vote unanimously to change the address. Then you need to fill out the LLAD01 or AD01 form, give it to the registrar, or do it online. The changed address is first carefully checked, a decision is made, and only then changes are made to the register. Once included in the public registry, the address on official documents must be changed. If this is not done in a timely manner, the company may be subject to penalties.

The importance of legal address transparency is undeniable. This aspect has a significant impact on the work of the company, registration of invoices, etc. Therefore, some businessmen rent a legal address. A number of reasons push them to such a decision:

 

    • reorganization of the organization;
    • lack of own commercial premises;
    • invalidity of the previously used address.

 

 

Why Is It Worth Using Virtual Office Services With a Legal Address For Business In the UK?

A legal address, which is usually included in virtual office services, is important for doing business in the UK. Several main reasons can be identified:

 

    • Legal requirements. A legal address is required so that government agencies and third parties can contact the company in official matters.
    • Professionalism. The correct choice of legal address has a positive impact on your professional appearance.
    • Mail forwarding. If the actual address of the company is different from the legal address, the mail forwarding service becomes extremely useful.
    • Confidentiality. Directors and employees may not wish their personal or home addresses to be known to the general public.
    • Efficiency. All important documents received at the legal address are forwarded to the right place without delay.

 

 

Final Thoughts

You cannot do without a company’s legal address in the UK. Today, you can open or change a legal address in the UK, as well as register a company, remotely. We recommend contacting Hoxton Mix if you are looking for an affordable virtual address for business. In addition to a prestigious business address in London, you can benefit from a range of additional useful services, including receiving and forwarding mail.

 

David Prior

David Prior is the editor of Today News, responsible for the overall editorial strategy. He is an NCTJ-qualified journalist with over 20 years’ experience, and is also editor of the award-winning hyperlocal news title Altrincham Today. His LinkedIn profile is here.

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